Monday, September 22, 2008

Refinance Mortgage Loan – Tips on Refinancing Your Home Mortgage

by: Carrie Reeder

Refinancing your home mortgage can come with some great perks. If you do it with no money out of pocket, you can skip one to three mortgage payments.
You can save money on your payment or pay off your entire mortgage faster when you have better terms.

Here are a few things to pay attention to when you refinance your mortgage loan, to make sure that you don’t overlook anything that you might regret, or that can cause you problems later:

1. Apply for a pre-approval to many different lenders to make sure you are getting the lowest rate possible. When you do this, make sure that with the initial pre-approval application, the lender is not pulling your credit history. You will want to reserve your credit pull for the lender that you are most likely to work with. You can decide that after you have gone through the preliminary pre-approval process with a few lenders.

Each time your credit is pulled, it docks your credit score just a little. If you have too many inquiries, it could keep you from refinancing your mortgage loan with the lowest rate possible. When you pre-apply for home mortgage loans online, most lenders or mortgage service companies will not initially pull your credit. Check for information about this on their website. They will usually tell you whether or not they are going to pull your credit. Also, if on the application you do not give them your social security number, they cannot pull your credit. If, on the application, they ask you to describe your credit, they are probably not pulling your credit.

2. Make sure that your original mortgage does not have a pre-payment penalty or early payoff penalty of any kind. Sometimes people will get into their mortgage with the mortgage having a pre-payment penalty and they will not even know about it. Pre-payment penalties usually range from 6 months to 3 years with a penalty for an early payoff. The penalty is usually about the amount of 6 months worth of your mortgage loan interest, but this varies. You would have to be able to have some significant payment and interest savings on your refinance loan to justify refinancing a mortgage loan with a pre-payment penalty.

3. When evaluating different lender offers, in the mortgage loan pre-approval process, pay closest attention to the interest rates they are offering & the closing costs. These are the two biggest factors that will help you figure out which lender is right for you. If one of these two factors is too high, it could offset the benefit of refinancing for you.

4. Get your interest rate and closing costs in writing as soon as you decide on a lender to work with. Get your lender to give you a commitment in advance of all of the costs that will be involved with your loan. Find out if the refinance loan you are getting has a pre-payment penalty as well. Sometimes lenders will leave out important information like this, if they think it might scare you away from refinancing with them.

To view a list of highly recommended refinance mortgage lenders, most of which will not pull your credit in the initial application, visit this page:www.abcloanguide.com/refinance.shtml.

About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com. ABC Loan Guide is an informational loan website with informative articles, the latest finance news and lists of recommended mortgage lenders.
carrie@abcloanguide.com

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Sunday, June 15, 2008

Small Business Loans: Tips For Obtaining a Small Business Loan

Author: Dee Power

When a small business needs capital, a small business loan from a bank comes first to mind. Banks want to lend to companies that have a record of profitable operations, that generate cash flow sufficient to repay the loan, and that have enough collateral or assets to secure the loan. A clean credit record for both the company and the principals of the company is mandatory; few late payments, and no bankruptcies or foreclosures.

Most start-up companies do not quality for traditional bank financing unless the founder has the personal net worth and income to guarantee the loan. The loan then is a really a personal loan to the founder rather than a business loan.

Check with the bank that you have your business accounts with for the person who handles commercial or business loans. You will be asked to provide financial statements for both you and your company for the last several years as well as tax returns. You may also be asked to provide documentation as to the accounts you have, both personal and business. A business plan will be required and you will most likely have to complete the bank's own loan package.

You will have to personally guarantee the business loan, which means any and all assets you have will be pledged to pay off the loan if your business doesn't. If you live in a community property state, your spouse must also personally guarantee the loan.

First Tip: The acquisition of a bank loan takes time, as with any form of financing. Begin the process of finding a loan several months, at least, in advance of when your company needs the capital.

Second Tip: In looking for a bank loan, you are really approaching a vendor (the bank) to see if you want to buy his product (money). Don't approach the situation like a starving peasant who desperately needs food (funds) to stay alive. The bank needs you or it has no revenue (except of course for the exorbitant amount of interest it earns on VISA cards).

Cash (flow) Is King

Before approaching a banker about a loan, it is imperative to prepare a detailed cash flow forecast to determine how much capital you need, and how and when the loan will be repaid. To the banker, the cash flow forecasts--and historical financial statements--are extremely critical. The venture capitalist has lofty goals for his relationship with your company--to earn a fantastic rate of return over a variable length of time. He may cash out of the business in 3 years, maybe 5, but in any case, he wants to create great wealth out of his participation in your company. The banker has more modest goals--to get his money back with a specified rate of interest--but he is much more concerned about timing--getting the interest and principal back from you at prearranged points in time--and in protecting his original investment. The banker, too, responds to forecasts that are realistic and containing detailed assumptions. Just as the venture capitalist tires of reading Business Plans with ridiculous or unsubstantiated projections, the banker appreciates well-thought out numbers grounded in reality.

Tell The Banker About Your Business

You also must prepare a Business Plan-type profile on your company to enable the banker to better understand your business. The Business Plan is your marketing tool again, just as it was with the venture capitalist. It also shows the banker your ability to plan and organize your company--skills that will enhance your ability to pay him back.

Follow these tips and you'll be successful in obtaining a small business loan.

Article Source: http://www.articlesbase.com/finance-articles/small-business-loans-tips-for-obtaining-a-small-business-loan-444993.html

About the Author:
Dee Power is the author of several nonfiction books. Interested in learning more about obtaining a loan? If you're looking for a loan, you need a business plan . On a lighter note check out Dee's website Party Ideas for Kids.

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Saturday, May 31, 2008

Investment and Loan Info

Are you going to open your business and you don't have enough money to perform it. Don't worry, actually there are several resources to finance your business. You can search investor or you can borrow loan from bank or another third party. You have to be careful to choose the right lender for your business.

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